Benchmarking & Process Improvement

The application of Benchmarking in business is a simple but effective concept and has many varied applications ranging from high level “macro” comparisons to detailed process reviews. The overall aim is to provide a comparison with either financial or operational “best practice” to ascertain and measure relative performance. As supply chains come under increased scrutiny, the need to maximize the efficiency of the logistics function is of greater importance.

Benchmarking can be anything from a simple comparison of easily identified factors, such as transport rates, to an in depth exercise looking at how processes operate in detail and comparing them to Best Practice for similar processes in another organisations.

High level Benchmarking allows management teams to get a quick view on the effectiveness of their operation, and to identify if there is a need for further research or investigation. It’s important to make sure that the Benchmarking exercise adjusts for those factors which can skew the Benchmark one way or another, so that you are comparing “Apples with Apples”.

More detailed Benchmarking can be applied very effectively, and to very specific parts of the operation. And it doesn’t have to be in the same industry. For example, Benchmarking a defined process such as Order Processing using Process Mapping can be done across different sectors, allowing Best Practice developed in one industry to be transferred to another.

Detailed Benchmarking can review costs, measures (service levels, productivity etc) and processes. Process Mapping your operations and then Benchmarking it against another similar “Best Practice” operations enables the setting of internal targets to work to, costed for your particular sector.

Davies & Robson is ideally placed to use our experience and knowledge to provide a Benchmarking service tailored to suit the specific needs of your business. The service facilitates a true assessment of individual process efficiency and the identification of cost drivers whether they are service, customer, product, or operationally driven.

We can help clients realize the benefit of any potential improvement, diagnose the cause of inefficiency and provide an implementation structure for relative process changes. The results can be used to drive internal change or as a brief to negotiate with third parties.